Analyzing Organizational Growth: SWOT, PESTLE, Porter's Five Forces

This report provides a comprehensive analysis of various strategic tools used for evaluating organizational efficiency and performance. It explores SWOT analysis, PESTLE analysis, Porter’s five forces, Benchmarking, and the BCG matrix, detailing their applications, advantages, and disadvantages. The report discusses how these models can be used to analyze a company's internal capabilities, external environmental factors, competitive forces, and growth potential. It also determines the most suitable model for Tesco PLC, emphasizing the importance of considering multiple models for effective strategic decision-making. Desklib offers a wealth of similar resources, including past papers and solved assignments, to aid students in their studies.

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Abstract
There are different methods of analyzing the efficiency and performance of an organization.
These methods are SWOT analysis, PESTLE analysis, Porter’s five forces, Benchmarking
and BCG matrix through which the management can analyze the capability of the company
and factors influencing to operational activities of the company. Based on analysis of these
methods the management can take an effective business decision. In this concern, the report
is determining role of these methods making growth strategies. Analysis models for the
company provide a clear image of the performance of the company as well as the market
presence of the company. The model that can be most suitable for analysis of the organisation
will also be determined in this report.

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Table of Contents
Abstract......................................................................................................................................2
Table of Contents.......................................................................................................................3
Introduction................................................................................................................................4
Models for Company Analysis...................................................................................................5
SWOT Analysis......................................................................................................................5
PESTLE Analysis...................................................................................................................6
Porter Five Forces Analysis....................................................................................................6
Benchmarking.........................................................................................................................8
BCG growth-share matrix......................................................................................................8
Model Suitable for Tesco PLC...................................................................................................9
Conclusion................................................................................................................................10
References................................................................................................................................11

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Introduction
The purpose of this report is to analyse the different type of tools that can be used by an
organization in making growth strategies. In this concern, the report is determining the
different tools like SWOT, PESTLE, Porter’s five force, Benchmarking and BCG matrix
tools. Tesco PLC is taken into consideration to make understanding about the role of these
tools in an organization.

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Models for Company Analysis
SWOT Analysis
The full form of each letter of SWOT is strength, weakness, opportunities, and threats. The
analysis of a company with respect to these Four Points is done by this analysis.
Application for Company Analysis
Strength is helpful in analysing the internal capabilities of an organization in attaining the
competitive advantages in the associated market. Organizations can make an effective
business strategy through analysis of strengths in proper manner (Görener, Toker and Ulucay,
2012). On the other hand, weakness provides a way to develop the strategies by which weak
points can be eradicated from the company. A market contained different opportunities that
can be attained by an organization to expand the business operations in more productive
manner. Threats alarm the company to know about the different competitors and the trouble
that will come in the future for the company.
Advantages
SWOT analysis has different advantages for the management and individuals. These
advantages are as below:
 Multilevel analysis can be possible with the help of SWOT analysis
 It is the simplest method to analyse a company.
Disadvantages
 No weighing factors are included in SWOT analysis.
 It is the subjective analysis.
 It is the one-dimensional model that creates ambiguity
PESTLE Analysis
PESTLE analysis includes the external environmental factors that can affect the operational
activities of an organization. It is an effective method that can be used to analyze that how a

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company is operating its business operations in the external environment. PESTLE includes
different factors like political, economic, social, technological, environment and legislation.
Application for company analysis
The political situation of the country is responsible for doing business with ease or not.
Economic factors include interest rate, exchange rate, labour cost and government policies
that can influence an organization. The product and services that are provided by the
company are socially acceptable or not is analysed in the social factor. The use of innovation
and technology in the company as compared to the market can be understood with the help of
a technical factor. The legislation that is present in the particular country for the company is
also helpful in the company analysis (Srdjevic, Bajcetic and Srdjevic, 2012). The sustainable
environment methods are implemented by the company or not is being analysed with the
environmental factors.
Advantages
 It can be helpful in reducing the potential impacts to the organisation.
 Easy to use a framework, for the analysis of the company
 Analysis of the implication of entering undue Market by the company can be done
easily with the help of PEST analysis.
Disadvantage
 This method requires a huge data regarding the external factors.
 The cost involved in this analysis is more as compared to SWOT analysis.
Porter Five Forces Analysis
It is an effective method of analyzing the competitive factors that can influence the business
activities. This analysis comprises five points i.e. bargaining power of suppliers, threat of
new entrants, the threat of substitutes, the bargaining power of buyers and industry rivalry are
the main points under which the analysis is done.

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Application for Company Analysis
If a number of companies are there in the particular industry then the profitability of existing
company will become down. The retail industry is highly competitive as there are several big
retail organizations in the industry. If Tesco is not providing a good product to the company
on the reasonable price then the customer may move to the substitute. There can be a
situation in which the customer can make the pressure on the organisation to lower the prices.
This can be possible because of moving of customer from one company to other. This
denotes the bargaining power of the customer. Bargaining power of the supplier varies from
area to area (Dobbs, 2014). If there is a good amount of supplier present to the company then
the bargaining power of the suppliers will be low. In the present time, there is a competition
among all the companies. The competition is due to the innovation in the product and
services. Competitors can be analysed with the help of industrial rivalry.
Advantages
 It is helpful in the analysis of competitive forces.
 The attractiveness of the industry can be analysed.
Disadvantages
 Business issues are not addressed in the Porter five forces analysis.
 Company business environment is not addressed that is necessary for the profitability
of the company.
Benchmarking
The matrix of the company is compared with the competitor of the company in the industry.
Application for company analysis
The method is used to analyze the company in terms of generating revenues. The production
cost of the product of the company is analysed interest analysis. The employee turnover is

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also determined with the help of benchmarking (Zhu, 2014). The process cycle time is
investigated in this process.
Advantages
 Implementation of creative ideas can be done.
 Quality of work can be provided to the customers.
Disadvantages
 Insufficient information is available with the help of benchmarking for company
analysis (Tian & Ketsaraporn, 2013).
 The strategies that made after benchmarking showing decreased results.
BCG growth-share matrix
With the help of BCG growth-share matrix, the growth of the company can be analysed in
effective manner. This matrix is also known as quadrant matrix. The relative strength of the
product can be analysed with the help of this Matrix.
Application for company analysis
For the growth of the company, cash is required. This can be obtained from the other
businesses that can generate cache for the company with the help of share. The categorisation
of the form is done that can generate a different type of cash for the company. The dog is the
category that has a low market share and having low growth rate (Jonas, Gebhardt and
Krause, 2012). Therefore, this category does not generate and consumes a large amount of
cash. The question mark that is growing but they are having a low market share. Therefore,
this category will consume a good amount of cash but generate less cash. Star is the category
that can generate a large amount of cash as well as consumes also. The cash cow is the
categories that consume fewer amounts of cash and generate the good amount of cash due to
the mature presence in the market as a share leader.
Advantages

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 Simple and easy to understand
 Future actions can be decided
Disadvantages
 Neglect synergies between business units.
 High market share not always leads to profitability
Model Suitable for Tesco PLC
Tesco PLC is providing its retail services across UK. The company totally deals in a wide
variety of grocery products at a resonate prices. Tesco Plc has required to analyze different
strategies to identify the competitive advantage in the UK retail market like price penetration,
product differentiation, and effective supply and so on. Hence, BCG matrix would be more
effective for Tesco in terms of future development, because the company can easily identify
the cash cow products and invest more in particular product in order to maximise the revenue.

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Conclusion
From the above discussion, it can be concluded that each of the analysis model has different
advantages and disadvantages that must be considered by the organizations while making
strategic decisions. It is necessary for an organization to implement all the models for the
analysis of the company that will lead to growth of company.

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References
Dobbs, M., (2014) Guidelines for applying Porter's five forces framework: a set of industry
analysis templates. Competitiveness Review, 24(1), pp.32-45.
Görener, A., Toker, K. and Ulucay, K., (2012) Application of combined SWOT and AHP: a
case study for a manufacturing firm. Procedia-social and behavioural sciences, 58, pp.1525-
1534.
Jonas, H., Gebhardt, N. and Krause, D., (2012) Towards a strategic development of Modular
Product Programs. In DS 70: Proceedings of DESIGN 2012, the 12th International Design
Conference, Dubrovnik, Croatia, pp. 959-968
Srdjevic, Z., Bajcetic, R. and Srdjevic, B., (2012) Identifying the criteria set for multicriteria
decision making based on SWOT/PESTLE analysis: a case study of reconstructing a water
intake structure. Water resources management, 26(12), pp.3379-3393.
Tian, Z. and Ketsaraporn, S., (2013) Performance benchmarking for building best practice in
business competitiveness and case study. International Journal of Networking and Virtual
Organisations 11, 12(1), pp.40-55.
Zhu, J., (2014) Quantitative models for performance evaluation and benchmarking: data
envelopment analysis with spreadsheets (Vol. 213). UK: Springer.